Everything you need to know about Fujairah Free Zone Company Setup

Out of the seven emirates in the United Arab Emirates (UAE) there is one whose coastlines are entirely on the Gulf of Oman and none on the Persian Gulf unlike other 6 emirates. This emirate is called Fujairah and is distinct from other emirates in the fact that it is almost complete mountaneous in terrain.

With an area of 1.5% of total UAE, Fujairah is the fifth largest emirate of the United Arab Emirates.

Economy is booming all over the UAE, and taking inspiration from Dubai and Abu Dhabi, Fujairah has also come up with its own free zone which is located around the Jebel Ali port. While typically the stake of a foreign company owner in Fujairah is limited to 49%, company setup in Fujairah freezone offers you the benefit of 100% ownership.

Business setup in Fujairah freezone and why is it favorable?

Three words-Accessibility, connectivity and Economy

Freezone of Fujairah is close to port of Fujairah, Fujairah international airport (which is the only airport on the entire east coast). Due the factors, the freezone companies have easy access to gulf ports, India, Pakistan, Iran and red sea. There are mainland services available from as far as North America, Europe, Far East and the Mediterranean. You will not be far away from major shipping routes, an exceptional port and international airport.

So what are the advantages of operating out of Fujairah free zone? Here are a few.

Unmatched economy- tariffs are low

Very less startup time

Easy licensing procedures- in some cases it takes literally 1 working day to procure a license for your preferred business activity for Fujairah free zone company formation

State policies permit full repatriation of profit and capital

Modern and sophisticated communication system

Opportunity for investment in shipping and agriculture, tourism

Opportunity for investment in geological projects(rock, minerals and Oil)

Business friendly environment and a stable currency

Reduced infrastructure establishment costs

Reduced overhead costs.

Government has investor friendly policies

Freedom to business owner to choose from wide range of investment fields

100% investment security

Efficient and very cost effective investment facilities

Fujairah freezone: A brief overview

Fujairah free zone was formed in year and since then it has experienced tremendous growth with over 200 companies setting up base.

Mains sectors of operations

Information technology

Textiles

Recycling

Gold

Castings

Heating and cooling units

Plastics and perfumes

Trading sector

Service sector

Exclusive befits of business setup in Fujairah Freezones

100% repatriation of foreign capital and profit: you can plough back all your profits to your business without paying any taxes

100% tax exemption: This is a blessing in disguise and it helps your business operate at 100% efficiency

Single window clearance: It is said it takes 1 working day to get a business license in Fujairah

Common customer duty facility available for seaport and airport: it saves the hassle for separate customs duty for seaport and airport

No recruitment restrictions; it may not be mandatory to recruit a person of UAE dissent

Infrastructure and real estate benefit: you can easily get office facility, warehouses to run your business and land facility

Virtual office: This is the latest advantage, at a nominal one time setup fee, minimum annual capital requirement and refundable security deposited; you have the benefit of operating a branch of your company in Fujairah free zone, without being actually physically present in Fujairah.

So what are the feasible legal entities under FFZA?

Branch of a foreign company, including offshore company

Branch of a UAE company

Freezone establishment

Freezone company

For branch of foreign company and branch of UAE Company, there is no capital-cash physical requirement. Also there is no lower limit on number of shareholders and formation fee is nil.

This is slightly different for freezone establishment (FZE) and Freezone Company (FZC). Minimum capital requirement in case of both FZE and FZC is AED 150,000 and formation fee is AED 5000. Minimum no. of shareholders for FZE is one and for FZC is two.

Licenses: there are total five types of licenses that you can apply for depending upon the business activity you choose

Trading (normal )license

General trading

Professional/service license

Industrial license

National industrial license

Each type of license has separate cost attached to it. You can get in touch with Commitbiz business consultants who will assist you with the licensing requirements.

Before you decide about what kind of business activity you want to get into, it is important to know about the allowed business activity in the freezone area. Import export, manufacturing, assembling, packing, distribution, consolidation, storage, processing, international business consultancy are all in the allowed list of activities.

Special licenses are required if business owners want to engage in activities with respect to petrochemical, education, oil, investment and any other special segment. Annual fee for such licenses start at AED 5000. With all these restrictions and licensing cost it is important to isolate a single area of business and build up on it.

Before we wrap up, here is quick run-through on the mandatory documentation for starting up business

Application for utilities required for water, electricity and other amenities.

In case you want to operate a manufacturing unit, you need to apply for environment clearance and for that you need to submit project report detailing the process.

The above documents are sufficient to get an initial approval, following which a complete set of documentation has to be submitted to the executive committee of the Fujairah chamber of commerce for final approval.

All in all, the business setup in Fujairah free zone seems like an exciting opportunity. If you have a business idea, or you want to expand your business in the UAE, look no further than Commitbiz business consultants. We have the right business acumen and local knowledge to guide you swiftly- from registration to setup to fully functional business in no time.